China Shames and Warns Government Officials Over Alcohol Consumption

The Communist Party of China’s (CPC) top disciplinary watchdog Wednesday [20 September 2017] named and shamed officials in five cases for consuming high-end wine and liquor bought with public funds. In one case, the Tinghu District government of Yancheng city in Jiangsu Province was found to have spent 1.2 million yuan (182,731.8 U.S. dollars), buying over 2,000 bottles of liquor from 2013 to 2016, according to a CPC Central Commission for Discipline Inspection (CCDI) statement…Full Article: Xinhua Sept 2017

Key Point

An official warning was given to the Chinese district government leaders in the five reported cases.

ChinaAg Comments

In September 2017, a ban on alcoholic beverages went into effect in Guizhou Province. The ban applies to all Communist Party civil servants and officials working in state-run companies. Similar bans have also occurred in the provinces of Heilongjiang, Jilin, Jiangsu, Zhejiang, Anhui, Hunan, as well as Xinjiang Region. Hunan Province in particular has banned all alcoholic beverages during official receptions and national holidays.

In June 2017, Sichuan Swellfun, aka Shui Jing Fang (SHA:600779), announced plans to plans to invest approximately CNY 102 million (USD 15.1 million) on marketing, doubling the amount spent in 2016. The liquor company hopes to expand its distribution network in the provinces of Henan, Hunan, Jiangsu, Guangdong, Sichuan, Zhejiang, Fujian, as well as in the municipalities of Beijing, Shanghai, and Tianjin.

In June 2016, Anhui Province banned alcoholic beverages at official banquets. A representative of Anhui Golden Seed Winery, a liquor producer, lamented the recent ban in Anhui.

In February 2016, Chinese officials from the Central Commission for Discipline Inspection visited Anhui Province and found “excessive drinking” at banquets. In 2013, officials paid a similar visit.

In 2014, Chinese baijiu liquor comprised 37.5% of global liquor production, but only 0.8% of the international trade market.

In November 2012, China launched an austerity/anti-corruption campaign that has had a dampening effect on the consumption of high-end liquors within China.